Topline
The stock market went down as investors worried about the government’s plans to raise interest rates. Big technology companies like Amazon and Nvidia saw a drop in their stock prices, leading to a bad week for the stock market.
Key Facts
All major stock indexes fell, with the Nasdaq taking the biggest hit. Even though stocks had been doing well since the election, this week was not good.
The tech sector suffered the most losses. Companies like Amazon and Meta saw their stock prices go down by a lot.
Overall, stocks are still up since Election Day, but they have been going down recently.
Big Number
The six biggest U.S. companies lost a total of $510 billion in market value on Friday. This happened because investors were worried about higher interest rates.
Tangent
Healthcare stocks also went down on Friday. Pfizer’s stock dropped due to concerns about vaccine policies.
Crucial Quote
Investors are re-evaluating the impact of the upcoming Republican government on the economy, leading to uncertainty in the market.
Why Stocks Are Down
Bank of America warns that investors are becoming too optimistic about the future, especially with changes expected under a Republican government.
Vocabulary List:
- Investors /ɪnˈvɛstərz/ (noun): Individuals or entities that allocate capital with the expectation of a financial return.
- Interest /ˈɪntrəst/ (noun): The cost of borrowing money usually expressed as a percentage.
- Uncertainty /ʌnˈsɜrtənti/ (noun): The state of being unsure or having doubts.
- Sector /ˈsɛktər/ (noun): A distinct part or segment of the economy or an organization.
- Re-evaluating /ˌriːɪˈvæljueɪtɪŋ/ (verb): The act of assessing or appraising again.
- Market /ˈmɑːrkɪt/ (noun): A place or system where goods services or financial assets are exchanged.
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